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Free ACCA Business and Technology Practice Questions & Answers
300 exam-style Business and Technology questions. Pick your answer, hit Check answer, and see the worked solution — free to start, no signup.
100% free · No login to startQuestion 1
Which type of organisation is primarily owned and controlled by the government?
Select an option first.
Correct answer: B — Public sector organisation
Explanation: Public sector organisations are owned, controlled, and run by the government. Private limited companies are owned by private shareholders. Cooperatives are jointly owned by members. NGOs operate independently of government.
Question 2
A company whose shares are freely traded on a stock exchange is best described as:
Select an option first.
Correct answer: C — Public limited company
Explanation: A public limited company (PLC) lists its shares on a stock exchange for public trading. A private limited company restricts share transfers. Cooperatives are member-owned. Partnerships have no share capital.
Question 3
Which of the following best describes a cooperative?
Select an option first.
Correct answer: B — An organisation jointly owned and run by its members who share profits
Explanation: Cooperatives are jointly owned and run by members who share profits or benefits. They are not government-run, can make profits, and members typically have limited liability.
Question 4
A non-governmental organisation (NGO) differs from a private company primarily because it:
Select an option first.
Correct answer: B — Operates independently of government to serve social or political causes
Explanation: NGOs are citizen-based associations operating independently of government, usually serving social or political causes. They can employ staff, are not government-owned, and may or may not generate surpluses.
Question 5
Which of the following is a key characteristic of a private limited company?
Select an option first.
Correct answer: B — Shares are not publicly traded
Explanation: Private limited companies restrict share transfers and do not list shares publicly. PLCs have publicly traded shares. Private companies are not government-owned and have their own legal identity.
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Question 6
Synergy in an organisation refers to:
Select an option first.
Correct answer: B — The combined output being greater than the sum of individual efforts
Explanation: Synergy (often expressed as 2+2=5) means collective effort produces more than the sum of individual contributions. It is a key reason organisations exist, not related to outsourcing or downsizing.
Question 7
A virtual organisation is best described as one that:
Select an option first.
Correct answer: B — Uses information technology to connect detached and dispersed entities
Explanation: A virtual organisation uses IT to link dispersed employees or enterprises. It does not necessarily have no employees, is not confined to one location, and is not government-owned.
Question 8
In a hollow organisation, what happens to non-core business processes?
Select an option first.
Correct answer: C — They are outsourced to external providers
Explanation: A hollow organisation keeps its core competencies in-house and outsources the rest. Non-core processes are not eliminated or transferred to government.
Question 9
According to Mintzberg, which part of an organisation is responsible for the basic production of goods and services?
Select an option first.
Correct answer: C — Operating core
Explanation: The operating core carries out the basic work directly related to producing products and services. The strategic apex sets direction, middle line connects apex to core, and technostructure designs systems.
Question 10
The span of control in an organisation refers to:
Select an option first.
Correct answer: B — The number of subordinates reporting to one manager
Explanation: Span of control is the number of subordinates directly reporting to a manager. It can be narrow or wide. It does not refer to product range, geography, or hierarchy depth.
Question 11
Which of the following factors would lead to a wider span of control?
Select an option first.
Correct answer: B — Highly capable, self-sufficient workers
Explanation: Highly capable workers need less supervision, allowing a wider span. Geographic dispersion, task complexity, and additional managerial responsibilities all tend to narrow the span of control.
Question 12
A tall organisational structure is characterised by:
Select an option first.
Correct answer: B — Many management levels and narrow spans of control
Explanation: Tall structures have many hierarchical levels with narrow spans of control. Flat structures have few levels with wide spans. Tall structures tend to centralise decisions at the top.
Question 13
Which of the following is a disadvantage of a flat organisational structure?
Select an option first.
Correct answer: B — Wide span of control may stretch managers too thin
Explanation: A flat structure creates a wide span of control, which can overburden managers. Slow communication is a disadvantage of tall structures. High overhead from many managers is a tall structure issue.
Question 14
Delayering refers to:
Select an option first.
Correct answer: B — Removing layers of middle management to create a flatter structure
Explanation: Delayering removes middle management layers, creating a flatter, more horizontal structure. It is not about adding layers, outsourcing, or relocating operations.
Question 15
The scalar chain in an organisation is best defined as:
Select an option first.
Correct answer: B — An unbroken line of authority from the most senior to the most junior
Explanation: The scalar chain (chain of command) is the unbroken line of authority running from top to bottom of the organisation. It is not related to ratios of employees to managers or objective-setting.
Question 16
In a modular organisational structure:
Select an option first.
Correct answer: B — The organisation can be separated and recombined for greater efficiency
Explanation: Modular structures allow the business to be broken apart and recombined to operate more efficiently. They are flexible, not rigidly centralised or restricted to one product.
Question 17
Centralisation of decision-making means:
Select an option first.
Correct answer: B — Decision-making authority is concentrated at the top of the hierarchy
Explanation: Centralisation concentrates managerial and decision-making power at the top. Decentralisation delegates decisions downward. Centralisation is about authority, not physical location.
Question 18
Which of the following is a benefit of decentralisation?
Select an option first.
Correct answer: B — Faster local decision-making and increased staff motivation
Explanation: Decentralisation enables faster local decisions and can motivate staff by giving them autonomy. Consistency and uniform policy implementation are benefits of centralisation.
Question 19
Outsourcing refers to:
Select an option first.
Correct answer: B — Contracting work out to an external organisation
Explanation: Outsourcing involves contracting specific work to an external provider. Offshoring involves moving operations to another country. Both are distinct concepts.
Question 20
Which of the following best distinguishes offshoring from outsourcing?
Select an option first.
Correct answer: B — Offshoring means getting work done in another country; outsourcing means contracting to an external organisation
Explanation: Offshoring is location-based (work done in another country); outsourcing is about who does the work (an external party). A company can offshore without outsourcing by setting up its own overseas subsidiary.
Question 21
A key risk of outsourcing is:
Select an option first.
Correct answer: B — Misaligned interests between the client and the vendor
Explanation: A major outsourcing risk is that the vendor's interests may not align with the client's. Outsourcing typically increases specialisation and labour flexibility, and it often aims to reduce costs.
Question 22
The Shamrock Organisation model, developed by Charles Handy, refers to:
Select an option first.
Correct answer: A — An organisation with three types of workforce: core staff, contractors, and flexible workers
Explanation: Handy's Shamrock Organisation has three leaves: a core of professional staff, contracted specialists, and a flexible labour force. It is not about geography, products, or management layers.
Question 23
According to Robert Anthony's hierarchy, which management level is primarily responsible for day-to-day operational decisions?
Select an option first.
Correct answer: C — Operational level
Explanation: Anthony's hierarchy has three levels: strategic (long-term direction), tactical (medium-term planning), and operational (day-to-day execution). The board typically sits at or above the strategic level.
Question 24
Which of the following statements about the technostructure, as defined by Mintzberg, is correct?
Select an option first.
Correct answer: B — They serve as analysts who design and plan the work of others without doing it themselves
Explanation: The technostructure comprises analysts such as programmers and planners who design and improve work processes but do not perform the core work. The operating core does basic production. Support staff provide ancillary services. The strategic apex sets strategy.
Question 25
Which of the following is a characteristic of a partnership?
Select an option first.
Correct answer: B — Two or more people carry on a business together with shared responsibility and profits
Explanation: A partnership involves two or more individuals operating a business together, sharing profits and (in a general partnership) unlimited personal liability. Partnerships do not issue shares and may not have separate legal identity.
Question 26
Formalisation in an organisation refers to:
Select an option first.
Correct answer: B — The degree to which rules, procedures, and instructions are written and standardised
Explanation: Formalisation measures how extensively rules and procedures are written down and standardised. High formalisation means strict rule-following; low formalisation allows discretion. It is not about hierarchy or decision speed.
Question 27
The primary reason organisations use shared service centres is to:
Select an option first.
Correct answer: B — Reduce costs and improve efficiency by consolidating common functions
Explanation: Shared service centres consolidate support functions (HR, finance, IT) into one unit serving the whole organisation, reducing duplication and costs while maintaining internal control.
Question 28
In a sole trader business, the owner:
Select an option first.
Correct answer: B — Is personally liable for all business debts with no separation between personal and business assets
Explanation: A sole trader has unlimited liability — personal assets can be used to meet business debts. There is no legal separation between the owner and the business. Sole traders can employ staff.
Question 29
Which of the following best describes a social enterprise?
Select an option first.
Correct answer: B — An organisation that applies commercial strategies to achieve social, environmental, or community objectives
Explanation: A social enterprise operates like a business but prioritises social, environmental, or community goals over profit distribution. Surpluses are reinvested into its mission rather than paid to shareholders.
Question 30
Which of the following best describes a franchise arrangement?
Select an option first.
Correct answer: B — A business arrangement where a franchisor licenses its brand and model to a franchisee
Explanation: In a franchise, the franchisor grants the franchisee the right to operate under its brand and proven business model in exchange for fees or royalties. It is not a merger, divestment, or government monopoly.
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